Table 10.2Table 10.2 contains price, demand, and cost data for the Capri Theater, the only first-run movie theater in a small town. Should the firm adopt the single price policy or the student discount policy?
A. The single price policy because the firm does not meet the three conditions necessary to engage in price discrimination.
B. The single price policy because price discrimination would not be legal for this firm.
C. The single price policy because it is more profitable than price discrimination for this firm.
D. The student discount policy because it is more profitable than the single price policy.
Answer: D
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